A direct marketer of a purported weight-loss patch has settled FTC charges that it made false claims about the product.
SG Institute of Health & Education Inc. (SGI), of Tamarac, FL, agreed to stop claiming that Revopatch Plus causes substantial weight loss in a short period of time and that it had been approved by a government agency.
Included in the order is an “avalanche clause,” requiring the defendants to pay $1 million if a court finds that they misrepresented their financial condition. The defendants also include Pedro and Vanessa Salas, the owners of the company.
According to the FTC, SGI targeted Hispanics with direct response TV spots on Telemundo, and DR print ads in Spanish-language magazines like Conexiones and La Guia. The firm also advertised on the Recuerdo radio station. Consumers were directed to dial a toll-free number to buy the patch.
The firm falsely stated that the patch would reduce weight and cellulite, and that it had been approved by the FDA, the FTC continued.
SGI grossed over $1 million selling the patches in lots of 30, 60 and 90 for prices ranging from $60 to $200, the FTC claimed.
The suit was filed on Dec. 6 with the U.S. District Court for the Southern District of Florida.
